Course detail

Business Economics

FP-EPOAcad. year: 2025/2026

The course is divided into six basic blocks that complement each other and introduce students to the basic functioning of business economics. The first block is basic, introducing students to the categories of business economics such as the nature of the enterprise, the legal form of the enterprise, which stakeholders influence the enterprise, what are the enterprise objectives, including the strategic objectives management system and the enterprise life cycle. The second unit focuses on the asset and capital structure of the enterprise, which factors affect the asset structure, what is liquidity, working capital and net capital, what the optimal capital structure should be, how to prepare a balance sheet. The third block is very closely related to the previous block, why financial and investment decision making is important for a business. Another fourth block focuses on production decision making in terms of cost analysis, revenue, profit, how to prepare profit and loss statement. Then on measuring the performance of the business and the perception of the business as a value creator. This is followed by the fifth block related to economic decision making, namely the importance of cost management and product pricing. The last block explains the necessity of control tools for the economic management of the enterprise.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. Alena Kocmanová, Ph.D.

Department

Institute of Economics (ÚE)

Entry knowledge

Secondary school knowledge and skills.

Rules for evaluation and completion of the course

There is the oral examination. Skills of the student are tested on two tests.
Two tests:
TEST I (7.- 8. week): 20 points
TEST II (11-12.week): 20 points
Minimum number of points to get the credit: 25 points.
The grade is given on the basis of two control tests and oral examination.


The checking during the semester is based on the completion of two tests. In the case of excused absence from seminars, teacher can, in justified cases, set a alternative condition - usually the procession of the alternative

Aims

The aim of the course is to introduce students to the basic theoretical knowledge of business economics and the interdependence of relationships in business practice. The economic aspect of the subject is emphasized in the lectures and the emphasis is placed on the acquisition of professional terminology. Students acquire professional knowledge and skills in business economic management, which are divided into six blocks and complement each other. Upon completion of the course, students will:

  • can define a business, business, understand the business environment, business objectives, understand the business life cycle,
  • can define the asset and capital structure of an enterprise and the factors that influence them;
  • can explain the nature of financing and investing in an enterprise;
  • can explain the concepts of revenue, costs, profit and loss, value added;
  • can explain the nature and importance of financial analysis, including the measurement of business performance;
  • can explain the nature of value management;
  • be able to prepare cost and price calculations;
  • define and analyse the turning point;
  • define the basic control tools of economic management of an enterprise.

On the basis of the knowledge and skills acquired, students should be able to practically apply knowledge of business economics to lower functions in the enterprise or in the business itself. The course provides a comprehensive view of business economics and forms the basis for the teaching of related vocational subjects in the upper years of study.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

KOCMANOVÁ, Alena a kol. Měření podnikové výkonnosti. Brno: Littera, 2013. 249 s. ISBN 978-80-85763-77-5. (CS)
KOCMANOVÁ, Alena. Ekonomické řízení podniku. Praha: Linde a.s., 2013. 358 s. ISBN 978-80-7201-932-8. (CS)
SCHOLLEOVÁ, Hana. Podniková ekonomika. Sbírka příkladů a případových studií. Praha: C.H. Beck, 2015. 159 s. ISBN 978-80-7400-275-5. (CS)
SYNEK, Miloslav a KISLINGEROVÁ, Eva, a kol. Podniková ekonomika. 6. přeprac. a dopl. vyd.,Praha : C.H. Beck, 2015, 526 s.  ISBN 978-80-7400-274-8. (CS)

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme BAK-MIn Bachelor's 2 year of study, winter semester, compulsory
  • Programme BAK-PM Bachelor's 1 year of study, winter semester, compulsory
  • Programme BIT Bachelor's 2 year of study, winter semester, elective
  • Programme BIT Bachelor's 2 year of study, winter semester, elective

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

prof. Ing. Alena Kocmanová, Ph.D.

Syllabus

1. Basic categories of business economics.

Enterprise (legal form of business, functions of enterprise) and stakeholders of enterprise.
Characteristics of corporate objectives. System of management of strategic objectives of the enterprise.
Enterprise life cycle.

2. Asset and capital structure of the enterprise.

Enterprise assets (fixed and current assets).
Factors affecting the asset structure.
Liquidity. Working capital and net capital.
Enterprise capital (own and external capital). Overcapitalisation and undercapitalisation.
Optimal capital structure (average cost of capital - WACC).
Balance sheet of the enterprise.

3. Financial and investment decision-making in the enterprise.

Fundamentals of corporate financing (sources of external and internal financing).
Working capital management (cash cycle, net working capital analysis).
Cash Flow Management.
Inventory and receivables management.
Investment decision making (time value of money).
Evaluating the economic efficiency of investments.

4. Production activities, performance measurement and enterprise value management.

Revenue and costs, profit and loss and their interrelationships.
Economy, economic efficiency, economic effectiveness.
Measurement of business performance. Methods of financial analysis (analysis of absolute indicators, analysis of difference indicators, analysis of ratio indicators). Pyramid systems of indicators.
Enterprise value management. Economic value added.

5. Economic decision-making.

Cost management (generic, purposeful cost breakdown).
Costing.
Breakdown of costs depending on the volume of production.
Managerial concept of costs. Relationship between profit, production volume, price and cost.

6. Control tools of economic management.

Financial accounting.
Analysis.
Budgets.
Internal audit.

Exercise

26 hod., optionally

Teacher / Lecturer

prof. Ing. Alena Kocmanová, Ph.D.

Syllabus

  1. Test questions and supplementary tasks practicing basic concepts of business economics such as enterprise, entrepreneur, business, legal forms of business, objectives of the enterprise, shareholders and stakeholders, environment of the enterprise, classification of the enterprise according to individual categories.
  2. Test questions and supplementary tasks practising the different stages of the business life cycle. Case studies aimed at determining the basic characteristics of a specific model enterprise according to the categories of enterprise classification, the division of entities into shareholders and stakeholders and their location in the environment of the enterprise , determining the stage of the life cycle in which the enterprise is located.
  3. Numerical examples aimed at compiling the components of the assets of the enterprise according to the structure of assets in the balance sheet, determining the value of total assets, fixed and current assets and their share of total assets. Calculation of liquidity ratios and activity ratios.
  4. Numerical examples focusing on the composition of the capital components of the enterprise according to the structure of liabilities in the balance sheet, determining the amount of the value of total liabilities, equity and foreign resources and their share in total liabilities. Calculation of undercapitalisation and overcapitalisation ratios. Calculation of debt ratios. Calculation of the optimal capital structure using the WACC ratio.
  5. Numerical examples focusing on the analysis of net working capital , cash turnover cycle, cash requirements for financing current assets. Numerical examples focusing on discount and interest. Numerical examples focusing on the construction of Cash Flow by direct and indirect methods.
  6. Numerical examples focused on calculating present and future value. Numerical examples focusing on methods of evaluating the economic efficiency of investments.
  7. Verification of the knowledge of the material covered and practiced in Units 1 - 3 by means of numerical examples.
  8. Numerical examples focused on the compilation of the cost and income components of a company according to the structure of the profit and loss account, determining the value of the company's profit before tax and for the current accounting period. Calculation of EBIT, EBT, EAT.
  9. Numerical examples focused on the calculation of operating ratios (cost of revenues, productivity) and profitability ratios. Calculation of the economic value added ratio.
  10. Numerical example focused on financial analysis of a model of a specific enterprise using the methods - analysis of absolute ratios, analysis of difference ratios, analysis of ratio ratios, pyramid system of ratios.
  11. Numerical examples focusing on the calculation of full own cost (type calculation formula; division calculation - simple division calculation, step calculation, ratio calculation; mark-up calculation).
  12. Numerical examples focusing on the calculation of incomplete own costs (one-stage, two-stage). Numerical examples aimed at analysing the turning point and determining the value of the minimum volume, minimum price, maximum variable cost and maximum fixed cost of the product at which the firm achieves zero profit.
  13. Verification of the knowledge of the lectured and practiced material from the 4th, 5th block of the course by means of numerical examples.